Average offer prices for ex-China wire rod have moved down over the past week, impacted by the escalation of trade tensions between the US and China. At the same time, most major ASEAN mills have been trying to hold official offers stable, targeting distant markets like Europe.
Offers for ex-China wire rod from second-tier mills have been heard at $440-460/mt FOB, decreasing by $15/mt on average compared to April 3, while reference deal prices have been heard at $440-445/mt FOB. Large Chinese mills have also cut prices, offering at $470/mt FOB, down by $10/mt over the past week.
During the given week, demand for wire rod has continued to be slack due to a lack of confidence. The tariff escalation between the US and China has exerted a negative impact on market sentiments, resulting in a prevailing wait-and-see stance in the market. Overseas buyers will mostly hold off from purchases until Trump’s tariff policy becomes clear. It is expected that wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Wire rod offer prices from Indonesia’s Dexin have officially remained stable at $495/mt FOB and $500/mt FOB for European customers. The mill has been sold out for June shipment, so it has held back from cutting wire rod prices, unlike semis prices. Some market sources said that, for regional customers, ex-Indonesia wire rod can be priced at $490/mt CFR Southeast Asia, but the level is above that from China, and is considered to be nominal.
In Southeast Asia, the latest negotiations for ex-China wire rod have been reported at $465-470/mt CFR in the Philippines, down by $5/mt over the past week.
As of April 10, rebar futures at Shanghai Futures Exchange are standing at RMB 3,139/mt ($436/mt), decreasing by RMB 25/mt ($6.1/mt) or 0.8 percent since April 3, while up 2.01 percent compared to the previous trading day, April 9.
$1 = RMB 7.2092
